Monument cash ISA replaceable allowance

esselle_aitch

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

singhini

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

esselle_aitch

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

eskbanker

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

esselle_aitch

eskbanker said:

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

Thanks for the explanation, that makes sense 

jimjames

eskbanker said:

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

Although if it was an official ISA transfer wouldn't that mean that the replaceable allowance was now in a different place?

eskbanker

jimjames said:

eskbanker said:

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

Although if it was an official ISA transfer wouldn't that mean that the replaceable allowance was now in a different place?

My understanding is that no replaceable allowance transfers with the funds, so replenishment has to be to the ceding account rather than the receiving one.